CORPORATE
Swiggy files updated papers for Rs 3,750-cr IPO, to mop up Rs 18.53 cr via OFS
- IBJ Bureau
- Sep 27, 2024
Food tech giant Swiggy has filed its first updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for initial public offer (IPO). The fresh issue component is for Rs 3,750 crore, while the Offer For Sale (OFS) would comprise 18.53 crore of shares.
Assuming the recent price of share purchases at around Rs 350 apiece, the OFS component will be around Rs 6,500 crore.
Investors like Accel, Coatue, Alpha Wave, Elevation, Norwest and Tencent will sell shares and reduce their ownership in the company to make way for new ones, as people bet on the company’s long-term growth potential and also look for diversification away from Zomato.
India’s food delivery market, which is estimated to grow to Rs 2 lakh crore by 2030, is a duopoly with Swiggy and Zomato together commanding over 90 per cent of the food industry.
While Zomato went public in 2021, Swiggy is set to join its rival in the coming months.
Prosus (32 per cent), SoftBank (8 per cent) and Accel (6 per cent) are the key investors in Swiggy. Elevation Capital, DST Global, Norwest, Tencent, Qatar Investment Authority and Singapore’s GIC, among several others are the other shareholders in the company.
The company was valued at $10.7 billion when it had last raised funds in January 2022. However, over the past months, bankers have expressed confidence that Swiggy can list with a market capitalisation of around $10-13 billion.
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